Canada's $5,000 Federal EV Rebate Returns in 2026: Everything You Need to Know

Great news for electric vehicle buyers: after more than a year without incentives, Ottawa is bringing back its rebate program. Starting February 16, 2026, you can get up to $5,000 off a new EV purchase. And if you live in Quebec, you can stack this with the Roulez vert program for even bigger savings.

But heads up: the rules have changed. The new program excludes Chinese vehicles, has price caps, and will gradually decrease until 2030. Here's everything you need to know to take advantage.

The New EVAP Program Rebate Amounts

The Electric Vehicle Affordability Program (EVAP) picks up where the old iZEV program left off, with some important adjustments:

These amounts represent the equivalent of 2 to 3 years of gas fill-ups for a compact car. That's money directly in your pocket, applied at the time of purchase at the dealership.

What This Means in Real Terms

To put these numbers in perspective:

Who Qualifies? Eligibility Requirements

For the Buyer

The program is open to:

For the Vehicle

This is where it gets tricky. The Carney government added strict conditions to favor North American production:

Vehicles manufactured in a Free Trade Agreement (FTA) country:

Vehicles manufactured in Canada:

Chinese vehicles:

Which Vehicles Are Eligible in 2026?

Here's a list of popular vehicles that should qualify for the new program:

Battery EVs ($5,000 rebate)

Vehicles Made in Canada (no price cap)

Great news for premium vehicle buyers: if the vehicle is assembled in Canada, the $50,000 cap doesn't apply.

Pro tip: Always check the vehicle's VIN code. The letter "2" at the beginning indicates Canadian manufacturing.

Plug-in Hybrids ($2,500 rebate)

How to Get the Rebate

The process is simple and happens directly at the dealership:

Step 1: Choose an eligible vehicle

Make sure the model meets the criteria (price, manufacturing location, powertrain type).

Step 2: Buy or lease from a participating dealer

Nearly all Canadian dealerships participate in the program.

Step 3: The rebate is applied automatically

Unlike a tax credit, you don't have to wait for your tax return. The rebate is deducted directly from the purchase price or lease payments.

Required Documents

Important: Rebates are not retroactive. Only vehicles purchased from February 16, 2026 onward are eligible.

Stack with Roulez Vert in Quebec: Up to $7,000 Total!

Quebec residents have a major advantage: federal and provincial rebates can be combined. Here's what you can get in 2026:

Real Example: Chevrolet Equinox EV in Quebec

You save $7,000 instantly, not counting future fuel savings.

Warning: Rebate Amounts Will Decrease Each Year

The government has planned a gradual reduction of rebates until 2030. If you're planning a purchase, here's the expected timeline:

Battery Electric Vehicles

Plug-in Hybrids

Our advice: If you're deciding between 2026 and 2027, buy this year. You'll save an extra $1,000 — that's 20 tanks of gas.

Quebec's Roulez Vert Program Also Declining

Bad news for Quebecers: the provincial program is on a similar trajectory:

This is why 2026 is truly the ideal year to go electric in Canada. You get both the return of federal incentives and the last years of provincial rebates.

What This Means for the Canadian Market

The return of rebates comes at a critical time. EV sales in Canada dropped 36% in 2025 after the iZEV program ended. The government hopes to stimulate the purchase of 840,000 electric vehicles with this $2.3 billion envelope.

Major Changes from the Old Program

Frequently Asked Questions (FAQ)

Can I get the rebate if I already bought an EV in January 2026?

No. The program is not retroactive. Only vehicles purchased or leased from February 16, 2026 onward are eligible.

Is Tesla eligible for the program?

It depends on the model and price. The base Tesla Model 3 and Model Y exceed the $50,000 cap, but since they're manufactured in the United States (an FTA country), they could qualify if Tesla offers lower-priced versions. Check exact prices before buying.

Are used vehicles eligible for the federal rebate?

No. The EVAP program only covers new vehicles. However, in Quebec, the Roulez vert program offers $2,000 for used EVs that are 1 to 4 years old.

I'm a business. Am I eligible?

Yes! Canadian businesses and organizations can benefit from the program just like individuals.

What happens if the funds run out before 2030?

The program works on a "first come, first served" basis. If the $2.3 billion envelope is depleted, rebates will end early. This is what happened with the old iZEV program in January 2025.

Is the rebate taxable?

No. The rebate is not considered taxable income for individuals.

Conclusion: 2026 Is the Year to Go Electric

The return of federal rebates, combined with the final years of Quebec's Roulez vert program, creates an exceptional window of opportunity. You can save up to $7,000 on a new electric vehicle — and that amount will decrease each year.

If you're still hesitant, run the numbers with our cost calculator. When you factor in fuel savings, maintenance savings, and rebates, an EV is often cheaper than a gas car over 5 years.

Next step? Visit a participating dealer starting February 16, 2026 and make sure the vehicle you're interested in meets the eligibility criteria.

Last updated: February 16, 2026. Government programs may change. Always verify official conditions on [Transport Canada](https://tc.canada.ca/en/road-transportation/innovative-technologies/zero-emission-vehicles) before purchasing.

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